Our business model

Carefully designed to create long-term value and shared prosperity for our shareholders and other stakeholders, leveraging our core strengths and expertise to capitalise on growth opportunities available to us across the upstream value cycle.


1. Acquire

  • To date, we have acquired interests in six blocks in the onshore and swamp areas of the Niger Delta Nigeria and at any point in time we have an active pipeline of new acquisition and farm-in targets to help us grow our reserves and production on an ongoing basis.
  • In line with our strategy, we will maintain a price-disciplined approach and prioritise opportunities in the onshore and shallow water offshore areas of Nigeria that offer near-term production, cash flow and reserve replacement potential.
  • In 2015, Seplat acquired a 40% working interest in OML 53, onshore north eastern Niger Delta, and 22.5% working interest in OML 55, coastal zone of south eastern Niger Delta. These acquisitions further expand our footprint in the Niger Delta and further cement our position as a leading indigenous independent E&P in Nigeria.
  • Access to capital is also key to fund the acquisition of new opportunities. In 2105, we successfully completed, in difficult market conditions, a US1 billion debt refinancing with a suite of Nigerian and international leading banks.

2. Explore & appraise

  • In 2015, we did not drill any exploration wells, electing to focus capital expenditures to development drilling opportunities that would offer the greatest cash returns and rapid payback.
  • The Ogegere exploration well that was drilled in 2014 on OML 38 encountered oil bearing sands and indicated the potential for a new play, at greater depths than the primary target, which we continue to assess further on our acreage.
  • We will continue to appraise and test upside at our producing fields and also have a number of discovered but undeveloped discoveries on our blocks, some of which may be considered as appraisal targets in the future.

3. Develop

  • Since we acquired our interest in OMLs 4, 38 and 41 in July 2010, as operator we have drilled 45 new development wells, completed multiple workovers, reactivated production from pre-existing wells, constructed and installed a new liquid treatment facility, upgraded and significantly expanded the Oben gas plant, completed a new liquids pipeline linking our assets directly to the Warri refinery, installed additional storage capacity and implemented gas lift to aid our production with pressure support.
  • Another indicator of how actively we are developing our portfolio is the number of rigs engaged. In 2014, we had seven rigs engaged over the course of the year, the most of any operator onshore in the Niger Delta and drilled 23 wells (more than any other company). In 2015 we had five rigs engaged over the course of the year and drilled eight wells, reflecting adjustments made to the discretionary work programmed in response to the sharp drop in oil price.
  • Seplat has consistently been one of the most active drillers in Nigeria and has successfully undertaken and completed significant facilities and infrastructure projects on a fast-track timetable and within budget.

4. Produce and sell

  • At OMLs 4, 38 and 41 we have increased liquids production six-fold from an initial gross rate of 14,000 bopd at time of acquisition in 2010 to a 2015 peak rate of over 84,000 bopd. Similarly, we have seen our annualised average working interest production grow during this period, from 21,431 boepd in 2011 (our first full year of operations) to 43,372 boepd in 2015.
  • In 2012, we became the first operator in the Niger Delta to install a Lease Automated Custody Transfer unit, greatly improving our metering of input to the Trans Forcados Pipeline. As a result we have seen reconciliation losses allocated to Seplat reduce to current levels of around 10% to 12% compared to an average of around 18% pre installation.
  • Seplat has grown its natural gas output dramatically and regularly supplies over 300MMscfd gross exclusively to the domestic market, enough gas to underpin over a third of Nigeria’s current power generation.

5. Strong margin cash flow

  • It is important to maintain the financial strength and financial flexibility to fund our work programme at our existing portfolio and also the range of growth opportunities available to us.
  • We aim to operate in the E&P “sweet-spot” whereby cash flow generation from our current portfolio more than covers investments there too.
  • We also seek to utilise appropriate external funding sources,including debt, in support of new business opportunities where up-front acquisition costs and early capital investments may be required to bring them to self-funding status over the long term.

6. Shareholder returns

  • In addition to offering strong capital growth potential through the successful execution of our strategy, we also have a clear dividend policy that, in the absence of adverse macroeconomic conditions, should allow us to pay our shareholders a regular dividend taking into account our financial position and funding requirements.
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